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Japan Stocks End Lower as Yen Firms

TOKYO, Nov 9 (Reuters) - Japanese shares pulled back from midday gains to end lower on Tuesday, hurt by a stronger yen and some discouraging earnings, although a standout performance in tech stocks led by SoftBank Group limited losses.

The Nikkei closed 0.75% lower at 29,285.46, after rising as much as 0.82% earlier in the session. The broader Topix slipped 0.81% to 2,018.77.

Of the Nikkei’s 225 constituents, 184 fell and 39 rose, with two unchanged. Tech was the only winning sector, adding 0.75%.

During the afternoon session, the yen firmed to as strong as 112.73 against the dollar, a level last seen on Oct. 11.

Stocks rose earlier on a weaker yen and favourable financial results, but the market is ripe for a correction as the currency firms and the earnings season tapers, said a market participant at a domestic securities company.

Disappointing financial results weighed, with Kawasaki Heavy Industries tumbling 9.24% to be the worst performer on the Nikkei, and Fujikura sliding 6.61%.

Among other notable decliners, Uniqlo operator Fast Retailing lost 3.16%, Toyota Motor fell 1.63% and Sony Group dipped 0.97%.

“Japan isn’t seeing the speed of economic recovery of somewhere like the United States, so it seems likely the Nikkei will continue to be hemmed in around 29,500 for the time being,” said another market participant at a domestic securities firm.

Many tech-related stocks shone, led by startup investor SoftBank Group, which added 10.50% to be the top gainer on the Nikkei.

The company announced a 1 trillion yen ($8.9 billion) share buyback after the market closed on Monday, even as it revealed a quarterly loss.

Smartphone app company DLE Inc surged 15.38% after announcing financial results.

Internet Initiative Japan Inc jumped 7.87% after SMBC Nikko Securities upgraded the stock and raised its target price.

(Reporting by Tokyo markets team; Editing by Ramakrishnan M.)

Source: Reuters

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